Interest on fixed deposits
The bank will continue to offer 3.50 per cent interest on deposits with a maturity of seven days to 45 days, while SBI will continue to offer an interest rate of four per cent on term deposits with a maturity of 46 days to 179 days.
SBI will continue to offer interest at 4.25 per cent on deposits with a maturity of 180 days to 210 days, while the interest rate on fixed deposits with a maturity of 211 days to less than one year will remain at 4.50 per cent. Deposits of Rs 2 crore and above with a tenure of 1 year to 2 years will now fetch 5.25 per cent interest. It was earlier 4.75 percent. Now it has increased by 50 bps.
The bank will continue to offer an interest rate of 4.25 percent for deposits with a maturity of 2 years to less than 3 years and 4.50 percent for deposits with a maturity of 3 years to 10 years. SBI has published this on its website. The interest rates on NRO term deposits will be aligned with the rates on domestic term deposits. These interest rates will also be applicable on domestic term deposits from cooperative banks.
SBI last hiked the interest rate on fixed deposits below Rs 2 crore on 14 June 2022. After the revision, SBI now offers 2.90 per cent to 5.50 per cent interest on deposits with tenors ranging from 7 days to 10 years. 3.40 percent to 6.30 percent interest for general public and senior citizens.
SBI has increased the Marginal Cost of Lending Rate (MCLR) by 10 basis points or 0.10 per cent.
MCLR rates hiked
According to SBI’s website, the MCLR for one-year tenure has been raised to 7.50% from earlier 7.40%. For six-month tenure, the MCLR will be raised to 7.45% from 7.35%. Two-year loan rates will rise to 7.70 percent from 7.60 percent and three-year from 7.7 percent to 7.8 percent. This may lead to higher interest rates on retail loans for houses, vehicles, or personal items, which is also expected to increase your EMI.
SBI’s home loan rates range from 7.05 percent to 7.55 percent, depending on the CIBIL score. A borrower’s risk premium is charged based on the credit score. This means that a person with a credit score of more than 800 will have to pay a minimum rate of 7.55 percent for regular home loans. Interest rate varies from 7.45 per cent to 8.15 per cent on the bank’s car loans.
What is MCLR?
MCLR is the lowest lending rate below which banks are not allowed to lend. Banks revise the MCLR rate every month as per the market conditions. Marginal cost of borrowing rate varies for different tenures ranging from overnight to three years. MCLR is determined based on various factors like Marginal Cost of Funds, Cash Reserve Ratio (CRR), Operating Cost and Term Premium.